BRADLEY AND GRAVES CHAIR SMALL BUSINESS SUBCOMMITTEE HEARING ON CHINA'S BARRIERS TO FREE TRADE
Rep. Jeb Bradley (R-N.H.), Chairman of the House Small Business Subcommittee on Tax, Finance and Exports, along with Rep. Sam Graves (R-Mo.), Chairman of the Rural Enterprise, Agriculture & Technology Subcommittee, held a joint hearing today on the impact of unfair trade practices by China. The Subcommittees heard from a number of witnesses who testified on China's currency manipulation and issues regarding intellectual property rights.
"China has emerged within the last two decades as a strong international competitor with a fast-growing economy. Although this new global economy has provided new business opportunities for many U.S. companies, including companies in New Hampshire, China's currency devaluation and weak intellectual property protection laws increase the cost of trade between our two countries," stated Bradley. "Today's hearing allowed Members to better understand the impact that China's trade policies have on U.S. companies, and hopefully work to find a solution to level the playing field between these two nations."
"When China violates international trade laws by counterfeiting goods developed and manufactured in the U.S., it hurts American manufactures and makes them less competitive in the international trading community," said Graves. "If China wants to be taken seriously on the global stage, then they need to do a better job enforcing and complying with international trade laws."
Since 1994, the Chinese government has kept its currency at 8.3 yuan to the dollar, and it is estimated by many economists that the yuan is undervalued by as much as 40 percent. China has also done little to enforce its new intellectual property protection laws, allowing for rampant piracy and counterfeiting. It is estimated that counterfeits constitute between 15 and 20 percent of all products made in China and account for about eight percent of China's GDP.
China is currently our third-largest trading partner, the second-largest source of U.S. imports and the fourth-largest U.S. export market. Trade with China has grown faster than with any other U.S. trading partner.